The private lender could be added to the MSCI Index on October 16. The inclusion follows Gruh Finance's merger with Bandhan Bank.
Shares of Bandhan Bank gained 20 percent intraday on October 11 amid reports that the stock could be added to the MSCI Index in the coming week. Gruh Finance, which merged with the private sector lender, also climbed 20 percent.
Bandhan Bank could be added to the MSCI Index from October 16 following its acquisition of Gruh Finance.
"We expect the stock to be included in the index with the weight of approximately 50 basis points, which could bring flow of $180 million,” Motilal Oswal said in its note.
The National Company Law Tribunal had approved the merger in September and the record date was fixed as October 17 for determining the shareholders of Gruh Finance who will be entitled to equity shares of the bank.
The bank will issue and allot 568 equity shares for every 1,000 shares held by Gruh shareholders.
Bandhan Bank was quoting at Rs 552.50, up Rs 45.55, or 8.99 percent, and Gruh Finance was up 7.42 percent at Rs 293 on the BSE at 1145 hours.The Great Diwali Discount!
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